After FrieslandCampina had already lowered the milk price for May, Arla and DOC Kaas also did the same today. The payout price of the latter is again a considerable amount off and there is only just a four.
DOC Kaas reduces the milk price by €3,24 to €40,38 per 100 kilos. Including bonuses and premiums, this can rise to €43,13. With this change, DOC Kaas is once again making a significant reduction. No explanation of the change is given. This is in contrast to February and March when the reductions were explained in detail.
Be that as it may, with the reduction the milk price moves towards the raw material value of milk, which is around the €40 level. Whether the bottom has now been reached after a series of heavy downgrades will only become clear at the end of this month when the June advance is announced. Cheese prices have been on solid ground again for more than two months, which means that milk prices can also start to think about bottoming out. Since December, a net €23,84 has been deducted from the DOC milk price, making them the leader in reductions.
Arla
Arla will also implement a significant reduction in May, from €3,22 to €43,97 per 100 kilos. But even with this mutation, the leading position of the Milk price comparator within reach. In an explanation, Arla states that the pressure on the milk price is due to the high supply figures, but that market sentiment is changing. This creates a better balance between supply and demand.